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1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

4. Compute gross profit earned by the company for each of the four costing methods in part 3.

Use the gross profit method to estimate the companys first quarter ending inventory.

Inventories&Cost of Sales Homework Handout PROBLEM 6-3 (page 290 in Fundamental Accounting Principles, 23 ed.) Montoure Company uses a perpetual inventory system. It entered into the following calendar- year 2017 purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Date Jan. 1 Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Prchase Sept. 5 Prchase Sept. 10 Sales Activities Units Acquired at Cost 600 units@$45.00 per unit 400 units $42.00 per unit 200 units @$27.00 per unit Units Sold at Retail Beginning inventory 800 units $75.00 per unit 100 units $50.00 per unit 500 units$46.00 per unit 600 units$75.00 per unit 1,400 units Totals 1,800 units Required 1. 2. 3. Compute cost of goods available for sale and the number of units available for sale Compute the number of units in ending inventory Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) Compute gross profit earned by the company for each of the four costing methods in part 3 4

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